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Factset's New Home at 45 Glover Avenue, Stamford

STAMFORD: Although it was a turbulent first quarter for certain submarkets, Fairfield County’s office fundamentals remained stable while Westchester County saw office leasing activity fall but asking lease rates rise in key submarkets, according to Colliers International Group Inc. (NASDAQ:CIGI, TSX:CIG).

“The market is still feeling the effects of GE’s consolidation as they formally market their 275,000-square-foot space in the Stamford Non-CBD submarket,” said Sean Cullen, director of research for Colliers’ Stamford office. “However, healthy leasing activity of 832,465 square feet has led to a net increase in availability of just 20 basis points from last quarter. Pricing fell slightly by 1.0 percent to $35.90 per square foot.”

REPORT:

Submarket highlights:

  • The Eastern submarket has evolved into one of the most competitive submarkets in the County. The availability rate dropped for the fourth consecutive quarter, falling 340 basis points from the beginning of 2017 to 15.0 percent. However, asking lease rates for the same period have dropped 8.0 percent to $20.56 per square foot, primarily due to lower-priced Class B space being added to the market.
  • FactSet’s a financial data services firm’s massive 173,164-square-foot lease at 45 Glover Avenue in Norwalk, [brokered by Colliers International], will have little effect on the Central submarket’s fundamentals since the company is leaving a similarly sized space in the submarket at 601 Merritt 7.

However, a variety of smaller occupiers have given back space, adding 200 basis points to the availability rate since last quarter. Nonetheless, asking lease rates have increased 3.0 percent this quarter to $31.10 per square foot.

  • Greenwich had a solid performance for the quarter following a strong 2017. Total leasing activity was 71,914 square feet, roughly 43.0 percent lower than the five-year quarterly average, but the net result of this quarter’s activity led to a drop in availability rate of 100 basis points since last quarter and 600 basis points since last year. As a result, the average asking lease rate climbed 6.6 percent year-over-year to $69.33 per square foot.
  • Stamford continues to be one of the most attractive submarkets in the area, recording eight out of the top 10 leases this quarter. However, GE’s decision to market their former space in the Stamford Non-CBD has helped drive up the availability rate in the submarket to a record high of 28.4 percent. The Stamford CBD saw its rate drop 80 basis points since last quarter, and asking lease rates improved 5.0 percent year-over-year to $46.50 per square foot, compared to $29.84 per square foot for the Non-CBD.
  • After struggling with a glut of newly available space in 2017, the Northern submarket has returned to the more competitive conditions seen in 2016. The availability rate has fallen 90 basis points from last quarter to 15.7 percent, 210 basis points lower than the 2017 peak. Asking lease rates have remained steady, falling by just $0.10 per square foot year-over-year.